This week, markets got a wake-up call with Trump’s so-called “Liberation Day” (or “Immolation Day,” depending on who you ask), his latest round of global trade tariffs that sent stocks, crypto, and even gold into a frenzy. So, what’s the deal, and why should crypto holders be paying attention?
Trump’s Trade Shake-Up
Trump dropped a 10% blanket tariff on almost every country on the planet, effective April 5, and threw in “reciprocal” rates for specific nations, like China (34%) and Vietnam (46%), starting April 9.
The announcement was carefully timed after markets closed, but crypto, which never sleeps, felt the hit instantly. Trump used emergency powers to push this through, claiming it was a move to fix the trade deficit and protect American industries.
Whether it helps is still TBD, but the immediate reaction from markets was loud and clear.
Crypto’s Whiplash
Bitcoin soared to $88K just before Trump’s announcement and then promptly crashed to $81.3K, a 7% drop in under 24 hours. It’s now hovering around $84K.
ETH and SOL also took hard hits dropping by 6%, while the total crypto market cap shed over $90B.
The carnage wasn’t limited to spot prices, $509 million in crypto positions were liquidated, including $176 million from BTC alone.
Why the sudden crash? Investors bailed on “risk-on” assets across the board, and right now, crypto is still seen as a high-risk play. especially when fears of a recession start creeping in.
When the stock market opened the next day, the S&P 500 plunged 4.8% while Nasdaq lost 6%, led by tech stocks.
Meanwhile, gold climbed to an all-time high near $3,170. Gold's chill rally versus crypto’s panic selloff paints a clear picture as investors are choosing safe havens over high-volatility assets (for now).
Recession Fears Are Rising
On Polymarket, where traders bet on real-world events, the odds of a U.S. recession surged past 50% after the tariff news hit. Goldman Sachs had already placed it at 35%, but now even more people are bracing for a slowdown.
What About Miners?
It’s not just price action, Bitcoin miners are sweating too.
Mining rigs from Asia (especially Malaysia, Indonesia, and Thailand) are about to get way more expensive, and some firms are scrambling to fly their gear in before the tariffs kick in.
That could lead to a hardware supply crunch, making onshore rigs way more valuable.
Looking Ahead
Whether Bitcoin recovers quickly depends on a few things:
- Will the Fed inject more liquidity if recession fears worsen?
- Will crypto regain its “hedge” status, or keep being treated like risky tech stocks?
- Will miners adapt quickly enough to avoid getting squeezed?
Right now, the vibes are shaky. But if history is any guide, crypto tends to rebound hard after panic-driven dips, especially if fiat systems start showing cracks.
Disclaimer: The content provided in this article is for educational and informational purposes only and should not be considered financial or investment advice. Interacting with blockchain, crypto assets, and Web3 applications involves risks, including the potential loss of funds. Venga encourages readers to conduct thorough research and understand the risks before engaging with any crypto assets or blockchain technologies. For more details, please refer to our terms of service.